KELOWNA, BC, July 9, 2012 /CNW/ - Cantex Mine Development Corp. (TSXV: CD) (the "Company") is pleased to announce, further to its news
release of June 22, 2012, the closing of its non-brokered private
placement financing (the "Offering"). The placement, which was over
subscribed, raised a total of $1,761,000 through the issuance of flow
through shares and non-flow through units.
The Company raised $1,336,000 through the issuance of 26,720,000 flow
through shares at $0.05 per share. An additional $425,000 was raised
through the issue of 8,500,000 non-flow through units at $0.05 per
unit. Each unit is comprised of one common share and one warrant, with
each warrant entitling the holder to acquire a further common share at
a price of $0.10 for a term of five years, subject to an earlier expiry
in circumstances where, at any time following six months from closing,
the closing price of the common shares of the Company is $0.25 or
greater for a period of 20 consecutive trading days. Insiders of the
Company subscribed for an aggregate of 7,520,000 shares.
There were no agents' commissions or other compensation paid in
connection with the Offering.
All securities issued pursuant to the Offering are subject to a four
month hold period expiring November 10, 2012.
Proceeds from the issuance of flow-through shares shall be used to
finance an exploration program focused the Company's gold claims in the
Yukon Territory and will qualify as Canadian exploration expenses (as
defined in the Income Tax Act) that will be renounced to the investors.
Recently, strong uranium and heavy rare earth element anomalies have
been identified from the past season's heavy mineral sampling program
in the Yukon. These anomalies include samples that are moderately to
strongly anomalous in the rare earth elements europium, terbium,
dysprosium, holmium and neodymium. These metals are currently in
demand for their use in many high tech applications and consequently on
a commercial basis command the highest prices of all the rare earths.
The technical information and results reported here have been reviewed
by Mr. Chad Ulansky P.Geol., a Qualified Person under National
Instrument 43-101, who is responsible for the technical content of this
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
SOURCE Cantex Mine Development Corp.
For further information:
Cantex Mine Development Corp., Tel: +250-860-8582, Email: email@example.com